Bakkt has announced plans to sell its loyalty rewards division to Project Labrador Holdco, a subsidiary of Roman DBDR Technology Advisors, for $11 million in cash. This strategic move marks a significant shift for the company as it transforms into a dedicated cryptocurrency platform, leaving behind its diversified business model.
The transaction, which should wrap up during the third quarter, includes various adjustments for liabilities and a short-term restricted cash loan to facilitate the transition. Once finalized, Bakkt will reclassify its loyalty segment as a discontinued operation, according to Monday’s company announcement.
Strategic Refocus on Digital Assets
Company president and co-CEO Andy Main emphasized that this decision sharpens their strategic direction, enabling the team to channel all resources toward their primary cryptocurrency offerings and stablecoin payment infrastructure. His co-CEO Akshay Naheta echoed this sentiment, highlighting their commitment to driving innovation, improving operational efficiency, and scaling their platform. The company plans to upgrade its trading technology infrastructure and push forward with the cryptocurrency treasury strategy they unveiled in June.
The financial rationale behind this pivot becomes clear when examining the revenue figures. During the second quarter, Bakkt’s cryptocurrency operations generated between $568 million and $569 million in revenue, while the loyalty unit contributed a modest $10 million. This stark contrast underscores why the company chose to concentrate on its more profitable segment.
🚨LATEST: Bakkt Holdings sold its loyalty services business to focus on being a "pure-play crypto" company.
It also plans to raise $75M to purchase Bitcoin and other digital assets. pic.twitter.com/kEqzh3qyn6
— Cointelegraph (@Cointelegraph) July 29, 2025
Industry Perspectives and Challenges
Max Shannon, senior associate for research at Bitwise Asset Management, interprets this move as a deliberate departure from retail-focused initiatives toward institutional-grade cryptocurrency infrastructure. He points out that success in this arena depends heavily on trust, security, regulatory compliance, and the ability to scale operations effectively.
However, Shannon raises concerns about Bakkt’s competitive positioning, particularly against established players like Coinbase. He notes that Coinbase maintains strong institutional relationships and serves as custodian for eight of the eleven Bitcoin ETFs, creating a formidable competitive advantage.
The capital raise accompanying this restructuring likely reflects financial pressures, according to Shannon. He points to significant cash outflows from customer fund withdrawals, which have contributed to operating losses and balance sheet challenges associated with the loyalty division.
Tomas Fanta, principal at crypto-focused venture firm Heartcore, describes the loyalty sale as an unconventional but strategic decision to eliminate a low-margin business line. He views Bakkt’s recent Bitcoin treasury initiative as following market trends rather than fundamentally transforming the business, suggesting it won’t materially impact near-term restructuring efforts.
Kony Kwong, CEO and co-founder at GAIB, sees this pivot as confirmation that infrastructure development represents the most viable opportunity in today’s cryptocurrency market. He emphasizes that Bakkt must establish a unique competitive advantage, whether through superior technology, specialized market segments, or stronger institutional relationships.
Market Outlook and Competitive Landscape
This strategic realignment positions Bakkt to compete more directly in the institutional cryptocurrency services sector, focusing on custody solutions, stablecoin payment rails, and tokenized asset offerings. The market’s neutral sentiment reflects cautious optimism about the company’s direction, though questions remain about its ability to differentiate itself in an increasingly competitive landscape where established players already dominate key institutional relationships.
Leave a comment